Seaside property forms part of a diverse rental market for Landlords, as properties can be rented to long-term tenants and holidaymakers. Residential property owners also have the luxury of having their own private getaways throughout the year.
Since the pandemic, there has been a notable shift in the popularity of holidaying in the UK rather than abroad. The cost-of-living crisis may also see consumers look for a break closer to home to avoid incurring the extra costs associated with a holiday abroad- such as expensive flights and pricey hotels.
As a result, the UK’s rental market in seaside towns is thriving, which sees investing in coastal property as an attractive option to many investors. In coastal University towns such as Brighton, the rental arena also extends to student lets, offering even more choices of tenants to landlords.
Renting out holiday homes
Suppose you are a homeowner considering purchasing a second home by the sea to escape the stresses of day-to-day life during the week. In that case, a holiday home offers the opportunity to create a second income stream when you are not using the home by renting the property out to holidaymakers.
Holiday home maintenance
If you are considering investing in a property by the sea, consider that the upkeep may be higher, and property maintenance may be more time-consuming. Salty sea air causes erosion, and if the property is exposed, the paintwork and render could need extra upkeep.
Your surveyor will be able to advise you on how likely these issues might be. Your solicitor will be able to conduct specific property searches to reveal any potential risks of flooding or location-specific issues, such as coastal erosion, so you can make an informed and rational decision when purchasing.
You may need to conduct bespoke searches concerning the property’s locality, including any environmental considerations.
Some searches now even report on climate change impact, which may be more important depending on the property’s location in relation to the coast. Your solicitor should report to you on the results of the searches and let you know if any other searches may be of use for the particular property you are buying.
Restrictive covenants on holiday homes
Suppose you have found a property you intend to rent as a short-term holiday let. In that case, your solicitor will carry out due diligence on the property and will check that the title documentation does not contain any restrictive covenants which will prohibit the use of the property.
There have been reports in recent times of restrictive covenants that state properties should be maintained as private residences only and are not to be used for commercial purposes. A holiday let would breach these covenants if they are in place.
These covenants may be put in place to create sustainable communities and enjoyable places for permanent residents to live. Such covenants are illustrated in the Nemcova v Fairfield Rents Ltd (2016) case, whereby the leaseholder rented out her London flat via Airbnb. The freeholder took the leaseholder to court for breaching a private residence covenant, and the judge found it in the freeholder’s favour and did indeed take the view that the covenant had been breached. If you already own a second property,
and would like to transition to renting the property out as a short-term holiday let, you must ensure that the covenants within the title deeds to the property do not prohibit such actions.
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